Japan's prime minister chose his deputy, Naoto Kan, as finance minister today after the elderly holder of the post resigned amid worries about whether the government could rein in spending in the face of a frail economy and ballooning debt.
The departure of Hirohisa Fujii, 77, one of the few experienced members in the administration, was another blow to Prime Minister Yukio Hatoyama as he struggles with falling ratings ahead of a mid-year election. It could also put at risk the fiscal restraint Fujii had championed.
Hatoyama said he had selected Kan - who has headed a newly created National Strategy Bureau that sets priorities for fiscal policy - to replace Fujii.
Kan is unlikely to favour big spending, given that public debt is nearly 200% of GDP, but he is less experienced in budgetary matters and it remains to be seen whether he can resist pressure to spend more if the economy sags again after emerging from a deep recession.
